“If you look at the AMFI data, it’s quite clear that investor interest remains strongest in equity and hybrid funds. The equity category has now seen inflows for 55 consecutive months, that’s a strong signal of confidence despite all the market noise,” Trivesh said.
Equity assets rose 1.8% in September to ₹33.68 lakh crore, up from ₹33.09 lakh crore in August.
Value funds recorded inflows of ₹2,108 crore, rising almost 85% month-on-month, while multi-asset hybrid funds added ₹4,982 crore, increasing their assets by 6.3% to ₹1.40 lakh crore.
Systematic Investment Plan (SIP) contributions also reached a record ₹29,361 crore.
Trivesh noted that domestic investors are treating the market as a long-term wealth-building avenue rather than reacting to short-term volatility.
Profile of current retail investors
Retail participation in mutual funds has been steadily increasing.
Trivesh said, “Individual investors, including HNIs, retail investors, and NRIs now hold about 63.2% of the total mutual fund industry AUM. That’s a shift in ownership towards individual participation.”
The largest group of investors remains aged 25-44, while Gen Z investors are also beginning their financial journeys through mutual funds. Equity allocation for the 25-44 segment has grown from 36% in FY2020 to 60% in FY2025, reflecting a rising comfort with market risk.
Average ticket sizes are also increasing.
Focused funds lead at ₹1.39 lakh per folio, followed by ELSS at ₹1.29 lakh, flexi-cap funds at ₹1.28 lakh, and large-cap schemes at ₹1.27 lakh.
“Investors are clearly trying to balance growth with stability; they are not just chasing returns but building diversified, long-term portfolios,” Trivesh added.
Tips for first-time investors
Trivesh advises new investors to avoid rushing in due to fear of missing out. “Many beginners jump into stocks based on tips or social media trends, and that’s where mistakes happen.”
He recommends starting with SIPs across equity, hybrid, and flexi-cap funds, with optional exposure to gold or silver ETFs for diversification.
“Whether your investment amount is ₹1 lakh or ₹1 crore, let your investments settle for at least two years before reviewing every six months. Avoid frequent redemptions; the biggest returns come from patience and consistency,” he added.
Common mistakes to avoid
Retail investors often chase past returns, over-diversify, or redeem in periods of volatility, which disrupts compounding. Trivesh warns, “Long-term investment does not imply blind investment, it implies being informed, patient, and persistent.”